ECONOMYNEXT – Sri Lanka hopes to avoid repaying debt till December 2027 under restructuring talks underway and repay them in the period running up to 2042, President Ranil Wickremesinghe said.
“We are in discussions to restructure all debt including foreign debt. We hope to end these discussions in the near future,” President Wickremesinghe told parliament Tuesday.
“We hope to get relief from paying debt from January 2023 to December 2027. We will then repay this debt from 2027 to 2042.”
Sri Lanka had foreign debt service of 6 billion dollars a year in 2022 or about 9.5 percent of gross domestic product.
After restructuring this will be brought down to 4.5 percent of GDP, he said.
Under default or debt standstill announced in April 2022, 4,451.1 million dollars are outstanding by December 2023, according to data published by the Finance Ministry.
Defaulted bilateral debt was 10,809 million dollars of which 1,770.8 million dollars. Private creditors were owed 14,741 million dollars of which 2,680.3 million dollars were in default.
Sri Lanka expects to conclude debt restructuring discussions successfully ‘soon’ he said.